Stock Market Crash: The stock market experienced a significant ripen on Thursday. The Sensex fell 780 points to tropical at 84,180.96. The Nifty 50 moreover fell 264 points to tropical at 25,876.85. Thursday marked the fourth subsequent day of declines in the Indian stock market.
What are the effects of the stock market crash?
This ripen has caused snooping for investors due to several factors. Geopolitical tensions, a potential 500% tariff from the US, and mixed earnings from companies have dashed market expectations. This ripen has moreover impacted the market's total capitalization. The market cap of all companies listed on the BSE has declined by increasingly than 9.90 lakh crore to 472 lakh crore in four days. This ways investors have lost approximately 10 lakh crore in four days. The Sensex moreover declined by approximately 1580 points in these four days.
What are the reasons for the stock market crash?
Trump's 500% Tariff: US President Donald Trump has supported a snout imposing sanctions on Russia. Under this bill, tariffs of over 500% could be imposed on Russian imports. Trump is using this snout to pressure countries like India, China, and Brazil, which are ownership oil from Russia at low prices. Although the snout has not yet been passed, Senator Lindsey Graham has said that a vote on it could take place next week.
Decline in Major Corporate Shares: Selling pressure unfurled on Thursday in major corporate stocks. Shares of HDFC Bank and Reliance Industries fell by up to 1%. Earlier this week, shares of these two major companies had fallen by up to 4%, remoter exacerbating the market decline. The metal alphabetize fell by 1.9%. The IT alphabetize fell by 1%.
Turmoil in Venezuela: The ongoing turmoil in Venezuela is impacting most thingamabob markets. This sudden upheaval has increased geopolitical uncertainty, particularly regarding Venezuela's petroleum reserves. This could impact global oil markets. This impact was moreover reflected in the stock market.
Slowdown in Global Markets: Asian stock markets were mostly lanugo on Thursday. Investors remained cautious without a strong start to the year. MSCI's broadest alphabetize of Asia-Pacific shares excluding Japan fell 0.6%, while Japan's Nikkei fell 1.2% and China's CSI300 blue-chip alphabetize fell 0.8%. US Nasdaq futures were lanugo 0.35%.
Fears of a Slowdown in Growth Rate: Concerns well-nigh domestic growth are moreover subtracting to investor caution. The National Statistical Office (NSO) has projected India's GDP growth at 7.4% in FY26, which is in line with ICRA's estimate. However, growth is expected to moderate in the second half of the fiscal year. ICRA estimates that growth will ripen to 6.9% in the second half of FY26 compared to 8.0% in the first half. This softening in growth expectations, combined with external shocks, is creating a cautious mood among investors. Investors are moreover factoring in geopolitical and trade uncertainties, as well as slowing domestic demand.
